The Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.) gives you the right to dispute anything inaccurate on your credit report, forces the bureaus and the company reporting the debt to investigate, and lets you sue for damages and attorney’s fees when they get it wrong. That last right is what most people, and frankly a lot of lawyers, miss.
What counts as a debt error worth disputing?
The ones we see most in Texas and Alabama: a debt that was paid or settled still showing a balance; a debt discharged in bankruptcy still reporting; a collection you already beat in court; someone else’s account on your file (a “mixed file”); a re-aged delinquency date that keeps a dead account alive; and identity theft accounts. Each of these is a factual inaccuracy, which is exactly what the FCRA is built for.
How does the dispute process work?
Dispute in writing with each bureau showing the error. The bureau has 30 days under § 1681i to investigate and must pass your dispute to the furnisher, which then has its own duty under § 1681s-2(b) to reasonably investigate, not just rubber-stamp its own records. Step-by-step instructions, current bureau addresses, and what to include are in our dispute how-to.
A detail that decides cases: the furnisher’s duty to investigate is only triggered by a dispute made through the bureau. If you only complain to the debt collector, you may have no § 1681s-2(b) claim at all. Dispute through the bureau, every time, in writing.
What can I recover if they verify a false debt?
Under the FCRA:
- Negligent violations (§ 1681o): your actual damages, plus attorney’s fees and costs.
- Willful violations (§ 1681n): actual damages or statutory damages of $100 to $1,000, plus possible punitive damages, plus fees and costs.
Actual damages aren’t just money out of pocket. Credit denials, higher interest rates, lost housing, and emotional distress all count, and Alabama and Texas juries have shown they take false credit reporting seriously.
Because the FCRA makes the defendant pay your attorney’s fees when you win, you don’t need money to hire us. Your consultation is free, and we’ll explain exactly how fees and costs work before you hire us.
When should a lawyer get involved?
After one clean dispute cycle fails. One written dispute, one bogus “verified” result, and you have both a mature legal claim and a documented record. At that point bring in counsel before disputing again; repeated identical disputes can actually muddy the record. John C. Hubbard, LLC handles FCRA cases across Alabama and Texas and has tried credit reporting claims to verdict.
FAQ
The bureau says the debt was “verified.” Is that the end? No. “Verified” often means the furnisher matched your name to its own file and did nothing more. A lawsuit tests whether the investigation was reasonable, and cursory ones usually aren’t.
Can I dispute a debt that’s mine but has the wrong balance? Yes. Accuracy under the FCRA covers amounts, dates, and status, not just whether the account exists.
Does disputing hurt my credit score? No. Filing a dispute is not itself reported as negative information.
By John C. Hubbard, Consumer Protection Attorney · Last reviewed July 2, 2026
This article is general information, not legal advice. Reading it does not create an attorney-client relationship. Every case depends on its facts.